ITC Limited's intrinsic value using Intellectual Capital analysis

ITC Limited

BSE : 500875

|

NSE : ITC

Industry : Cigarettes

|

ISIN : INE154A01025

|

FreeFloat : 70.42%

|

FnO : Yes

|

LotSize : 1600

BSE SENSEX | BSE SENSEX 50 | Nifty 50 | Nifty50 Equal Weight | BSE 100 | BSE 100 Largecap TMC | BSE 200 | BSE 250 LargeMidcap | BSE Largecap | BSE LargeMidcap | Nifty 100 | Nifty 200 | Nifty LargeMidcap 250 | Nifty100 Equal Weight | Nifty Alpha Low Volatility 30 | Nifty Alpha Quality Low Volatility 30 | Nifty Alpha Quality Value Low Voltlty 30 | Nifty Quality Low Volatility 30 | Nifty FMCG | BSE Dividend Stability | BSE Low Volatility | BSE Momentum | BSE Quality | Nifty Alpha 50 | Nifty Dividend Opp 50 | Nifty Growth Sectors 15 | Nifty Low Volatility 50 | Nifty100 Alpha 30 | Nifty100 Low Volatility 30 | Nifty100 Quality 30 | Nifty200 Alpha 30 | Nifty200 Momentum 30 | Nifty200 Quality 30 | Nifty50 Value 20 | BSE CARBONEX | BSE Bharat 22 | BSE India Manufacturing | Nifty India Consumption | Nifty Non-Cyclical Consumer

Intellectual Capital (IC)	207,269.50
Net Worth (NW)	71,264.20
Intrinsic Worth (IW)	278,533.70
Market Cap (MC)	411,530.10
Economic Value Added	2,722.98

Discount Rate	%
Liquidity Premium	%

Knowledge Basis (IC/IW)	74.41%
IC Gross Margin (EBITDA/IC)	13.54%
IC Net Margin (NPT/IC)	9.27%
Knowledge Turnover (Sales/IC)	0.39
Market to Intrinsic Value (MC/IW)	1.48

As Of	Intrinsic Value	Market Price
31 Dec 2022	Rs. 224.40	Rs. 331.55
20 Mar 2023	----	Rs. 378.80
20 Mar 2023	----	3.25 0.86%

Fundamental - medium term		Technical - near term		Combined outlook
EVA > 0 : Yes	Buy	10 DMA : Rs. 383.46	Accumulate	Buy
KB > 50% : Yes		50 DMA : Rs. 365.65
0 < M2IV < 1 : No		Vol-Price trend : Rising
Disclaimer: Stock outlook is based on data calculations only and does NOT constitute investment advice.

Question 3 - Is this stock undervalued?

Question 2 - Does this business have significant knowledge assets?

Question 1 - Is this business generating enough profits to cover its cost of capital?

* EVA is a registered trademark of Stern Stewart and Co.

Quarterly Results (Rs. Cr)

Quarter

Type*

Sales

Income

EBITDA

EBIT

PBT

PAT

NPT

Mar-20
C
12560.64
13228.40
5171.38
4758.15
4743.47
3926.72
3119.91

Jun-20
C
10478.46
11403.59
3870.69
3451.70
3435.88
2562.73
2576.16

Sep-20
C
13147.81
13730.06
4983.25
4578.65
4565.38
3413.44
3412.46

Dec-20
C
14124.48
14670.17
5330.71
4917.22
4904.61
3587.09
3582.87

Mar-21
C
15404.37
15983.86
5450.61
5042.10
5039.22
3819.62
3742.35

Jun-21
C
14240.76
14687.80
4890.78
4476.65
4467.31
3344.15
3359.28

Sep-21
C
14844.38
15313.15
5486.37
5064.64
5054.89
3766.38
3757.51

Dec-21
C
18365.80
18787.72
6019.59
5590.00
5580.44
4126.73
4136.30

Mar-22
C
17754.02
18252.64
6104.21
5637.25
5626.54
4265.87
3679.70

Jun-22
C
19831.27
20152.00
6407.64
5969.52
5960.27
4472.03
4208.18

Sep-22
C
18608.00
19062.68
6725.31
6262.93
6250.34
4681.85
4669.52

Dec-22
C
19020.65
19616.08
7310.29
6863.18
6853.97
5080.25
5131.61

* C - Consolidated, S - Standalone